UK hotel rates performing better than rest of Europe

24 February 2012 by
UK hotel rates performing better than rest of Europe

UK hotel rates are outperforming the rest of Europe as demand for the UK as a travel destination grows.

Newly-released data from Pegasus, which tracks the world's hotel transactions through the global distribution system (GDS) and alternative distribution system (ADS), showed that net average daily rates (ADR) increased by 2% in January 2012 on the previous year. European ADR climbed just 0.9% over the same period.

ADR was the success story in Pegasus's data, with reservations across Europe and the UK dipping in January 2012, compared with very strong growth in January 2011.

UK net bookings were down 7.5% in January 2012 compared with January 2011, while Europe dropped just 2.5% over the same period.

Pegasus said the European debt crisis made matching 2011's reservation volumes challenging, not only for Eurozone countries but also for the UK.

But it also indicated that the UK and especially London stood to benefit in the long-term from a series of world-class events this summer, including the Diamond Jubilee, Olympics and Paralympics. A worldwide television audience for the events is expected to rank even higher on consumers' lists of holiday destinations in general.

The exposure, combined with the growing supply of rooms opening in the four- and five-star categories, should keep the supply/demand balance in check for sustained revenue growth once the summer's celebrations have ended.

Meanwhile, among the UK cities, Aberdeen saw the greatest booking improvement in January 2012, with an 11% increase. London's reservations were also resilient, falling less than 6% on the previous year.

By Neil Gerrard

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